Strategy To YieldBoost OXM From 1.3% To 10.3% Using Options
November 21, 2014 at 14:35 PM EST
Shareholders of Oxford Industries, Inc. (OXM) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the April 2015 covered call at the $70 strike and collect the premium based on the $2.40 bid, which annualizes to an additional 9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.3% annualized rate in the scenario where the stock is not called away..